DroneShield Limited

ASX:DRO Stock Report

Market Cap: AU$3.3b

DroneShield Valuation

Is DRO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DRO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

AU$2.38
Fair Value
56.8% overvalued intrinsic discount
2
Number of Analysts

Below Fair Value: DRO (A$3.73) is trading above our estimate of fair value (A$2.37)

Significantly Below Fair Value: DRO is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DRO?

Key metric: As DRO is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DRO. This is calculated by dividing DRO's market cap by their current revenue.
What is DRO's PS Ratio?
PS Ratio30.4x
SalesAU$107.17m
Market CapAU$3.26b

Price to Sales Ratio vs Peers

How does DRO's PS Ratio compare to its peers?

The above table shows the PS ratio for DRO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.6x
ASB Austal
1.7x12.62%AU$3.0b
EOS Electro Optic Systems Holdings
14x19.43%AU$1.6b
RWC Reliance Worldwide
1.6x4.62%AU$3.2b
MND Monadelphous Group
1x4.85%AU$2.2b
DRO DroneShield
30.4x32.26%AU$3.3b

Price-To-Sales vs Peers: DRO is expensive based on its Price-To-Sales Ratio (30.4x) compared to the peer average (4.6x).

Price to Sales Ratio vs Industry

How does DRO's PS Ratio compare vs other companies in the Global Aerospace & Defense Industry?

42 CompaniesPrice / SalesEstimated GrowthMarket Cap
DRO 30.4xIndustry Avg. 4.9xNo. of Companies53PS048121620+
42 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DRO is expensive based on its Price-To-Sales Ratio (30.4x) compared to the Global Aerospace & Defense industry average (4.9x).

Price to Sales Ratio vs Fair Ratio

What is DRO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DRO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio30.4x
Fair PS Ratio11.7x

Price-To-Sales vs Fair Ratio: DRO is expensive based on its Price-To-Sales Ratio (30.4x) compared to the estimated Fair Price-To-Sales Ratio (11.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DRO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$3.73
AU$3.65
-2.14%
1.37%AU$3.70AU$3.60n/a2
Sep ’26AU$3.24
AU$3.65
+12.65%
1.37%AU$3.70AU$3.60n/a2
Aug ’26AU$3.63
AU$3.70
+1.93%
2.70%AU$3.80AU$3.60n/a2
Jul ’26AU$2.56
AU$2.30
-10.16%
13.04%AU$2.60AU$2.00n/a2
Jun ’26AU$1.32
AU$1.35
+2.66%
11.11%AU$1.50AU$1.20n/a2
May ’26AU$1.26
AU$1.35
+7.14%
11.11%AU$1.50AU$1.20n/a2
Apr ’26AU$0.90
AU$1.00
+11.11%
10.00%AU$1.10AU$0.90n/a2
Mar ’26AU$0.77
AU$1.00
+29.87%
10.00%AU$1.10AU$0.90n/a2
Feb ’26AU$0.67
AU$1.15
+71.64%
4.35%AU$1.20AU$1.10n/a2
Oct ’25AU$1.41
AU$1.33
-6.03%
1.89%AU$1.35AU$1.30n/a2
Sep ’25AU$1.33
AU$1.33
0%
1.89%AU$1.35AU$1.30AU$3.242
Aug ’25AU$1.19
AU$1.45
+22.36%
10.34%AU$1.60AU$1.30AU$3.632
Jul ’25AU$1.68
AU$1.20
-28.57%
16.67%AU$1.40AU$1.00AU$2.562
Jun ’25AU$1.13
AU$1.20
+6.67%
16.67%AU$1.40AU$1.00AU$1.322
AU$3.65
Fair Value
2.2% overvalued intrinsic discount
2
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/09/27 19:44
End of Day Share Price 2025/09/26 00:00
Earnings2025/06/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

DroneShield Limited is covered by 2 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Daniel LaingBell Potter
Abraham AkraShaw and Partners Limited